CANADA FX DEBT-C$ weakens ahead of domestic economy, jobs data

Reuters Staff

3 Min Read

* Canadian dollar at C$1.2847, or 77.84 U.S. cents
* Bond prices higher across a flatter yield curve
* Domestic GDP data for August is due on Tuesday
TORONTO, Oct 30 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday, but traded in a narrow
range as investors braced for top-tier domestic data later in
the week.
Canadian data on Tuesday is expected to show that the
economy grew by just 0.1 percent in August, which would support
expectations for slower growth in the third quarter after a
strong first half of the year.
Canada's employment report for October and the trade report
for September are due on Friday.
The Canadian dollar has been the weakest performer of the
G10 currencies since the Bank of Canada last raised rates in
September, and some strategists predict more declines in value
after the central bank on Wednesday dialed back expectations for
more hikes this year.
The central bank also hiked in July, which was the first in
nearly seven years. Its policy rate sits at 1 percent.
At 9:22 a.m. ET (1322 GMT), the Canadian dollar was
trading at C$1.2847 to the greenback, or 77.84 U.S. cents, down
0.2 percent.
The currency traded in a range of C$1.2812 to C$1.2855.
On Friday, it touched its weakest in more than three months
at C$1.2916.
Prices of oil, one of Canada's major exports, rose on
expectations that Organization of the Petroleum Exporting
Countries-led production cuts would be extended beyond March
although rising Iraqi exports put a lid on prices.
U.S. crude prices were up 0.41 percent at $54.12 a
barrel.
Bullish bets on the loonie have held near their highest
levels in about five years, data from the U.S. Commodity Futures
Trading Commission and Reuters calculations showed on Friday. As
of Oct. 24, Canadian dollar net long positions had dipped to
72,332 contracts from 75,086 a week earlier.
Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries as investors
awaited U.S. President Donald Trump's pick to lead the Federal
Reserve.
The two-year rose 1.5 Canadian cents to yield
1.418 percent and the 10-year climbed 18 Canadian
cents to yield 1.966 percent.
(Reporting by Fergal Smith; editing by Susan Thomas)